Hdfc Bank Stock Valuation

HDB -  USA Stock  

USD 53.80  1.16  2.20%

Do you wonder what the value of Hdfc Bank is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Hdfc Bank, is its stock price multiplied by the total number of shares outstanding, calculating Hdfc Bank's enterprise value requires a different approach. It uses Hdfc Bank's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Hdfc Bank Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 1.04 Trillion. The current year Enterprise Value is expected to grow to about 197.5 B, whereas Tangible Asset Value is forecasted to decline to about 8884.8 B.
Hdfc Bank retains a regular Real Value of $63.24 per share. The prevalent price of the firm is $53.8. At this time, the firm appears to be undervalued. Our model calculates the value of Hdfc Bank from evaluating the firm fundamentals such as Return On Equity of 16.64 %, return on asset of 1.95 %, and Shares Outstanding of 1.85 B as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage taking in undervalued assets and trading overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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Hdfc Bank Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Hdfc Bank's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 53.80
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Please note that Hdfc Bank's price fluctuation is very steady at this time. Calculation of the real value of Hdfc Bank is based on 3 months time horizon. Increasing Hdfc Bank's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Hdfc Bank is useful when determining the fair value of the Hdfc Bank stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hdfc Bank. Since Hdfc Bank is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hdfc Bank Stock. However, Hdfc Bank's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
63.24
Real Value
66.02
Upside
Estimating the potential upside or downside of Hdfc Bank helps investors to forecast how Hdfc Bank stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hdfc Bank more accurately as focusing exclusively on Hdfc Bank's fundamentals will not take into account other important factors:
Earnings
Estimates (4)
LowProjected EPSHigh
2.632.672.78
Details
Hype
Prediction
LowEstimated ValueHigh
50.2853.0655.84
Details
4 Analysts
Consensus
LowTarget PriceHigh
90.0092.1094.30
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Hdfc Bank's intrinsic value based on its ongoing forecasts of Hdfc Bank's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hdfc Bank's closest peers. When choosing an evaluation method for Hdfc Bank, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Hdfc Bank Investments

8.1 Trillion

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Hdfc Bank Valuation Drivers Correlation

Many accounts on the financial statements of Hdfc Bank are highly interrelated and sometimes correlated. Consequently, when conducting Hdfc Bank's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Hdfc Bank
Click cells to compare fundamentals

Hdfc Bank Valuation Trend

Knowing Hdfc Bank's actual value is paramount for traders to make sound investment determinations. Hdfc Bank's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Hdfc Bank's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Hdfc Bank's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Hdfc Bank Market Cap

Hdfc Bank is one of the top stocks in market capitalization category among related companies. Market capitalization of Banks—Regional industry is currently estimated at about 101.11 Billion. Hdfc Bank totals roughly 100.58 Billion in market capitalization claiming about 99% of stocks in Banks—Regional industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Hdfc Bank Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hdfc Bank's current stock value. Our valuation model uses many indicators to compare Hdfc Bank value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hdfc Bank competition to find correlations between indicators driving Hdfc Bank's intrinsic value. More Info.
Hdfc Bank is rated # 2 in five year return category among related companies. It is rated # 2 in price to sales category among related companies fabricating about  0.19  of Price to Sales per Five Year Return. The ratio of Five Year Return to Price to Sales for Hdfc Bank is roughly  5.27 . As of May 22, 2022, Price to Sales Ratio is expected to decline to 13.59. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hdfc Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hdfc Bank's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hdfc Bank's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Hdfc Bank's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Hdfc Bank and how it compares across the competition.

About Hdfc Bank Valuation

The equity valuation mechanism determines the current worth of Hdfc Bank on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Hdfc Bank. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hdfc Bank based exclusively on its fundamental and basic technical indicators. By analyzing Hdfc Bank's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hdfc Bank's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hdfc Bank. We calculate exposure to Hdfc Bank's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hdfc Bank's related companies.
Last ReportedProjected for 2022
Gross Profit899.8 B721.2 B
Profit Margin 0.48  0.45 
HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. HDFC Bank Limited was incorporated in 1994 and is based in Mumbai, India. Hdfc Bank operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 141579 people.

Hdfc Bank Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Hdfc Bank does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth23.80%
Revenue Growth17.20%
Earnings Growth23.00%
Enterprise Value To Revenue1.47

Hdfc Bank Current Valuation Indicators

Valuation refers to the process of determining the present value of Hdfc Bank and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hdfc Bank we look at many different elements of the entity such as Hdfc Bank's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hdfc Bank's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Hdfc Bank's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Hdfc Bank, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Hdfc Bank's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Hdfc Bank's worth.
Please check Risk vs Return Analysis. Note that the Hdfc Bank information on this page should be used as a complementary analysis to other Hdfc Bank's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for Hdfc Bank Stock analysis

When running Hdfc Bank price analysis, check to measure Hdfc Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hdfc Bank is operating at the current time. Most of Hdfc Bank's value examination focuses on studying past and present price action to predict the probability of Hdfc Bank's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Hdfc Bank's price. Additionally, you may evaluate how the addition of Hdfc Bank to your portfolios can decrease your overall portfolio volatility.
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Is Hdfc Bank's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hdfc Bank. If investors know Hdfc Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hdfc Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hdfc Bank is measured differently than its book value, which is the value of Hdfc Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Hdfc Bank's value that differs from its market value or its book value, called intrinsic value, which is Hdfc Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hdfc Bank's market value can be influenced by many factors that don't directly affect Hdfc Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hdfc Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine Hdfc Bank value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hdfc Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.